Anhui Xingma Automobile Successfully Acquires Valin Automotive to Build a Car Carrier

Anhui Xingma Automobile Co., Ltd. announced its asset restructuring plan - 100% equity interest in Xinghua Automobile's acquisition of Hualing Automobile. The estimated value of Xingma Automobile's proposed purchase of Valin Auto's assets is RMB 1.68 billion, and the issuance price of non-public offering of shares is RMB 8.18 per share. It is expected that the non-public issuance of shares will be approximately 205 million shares. Upon completion of the issuance of share purchase assets, Valin Motors will become a wholly-owned subsidiary of Xingma Motor Company.

This move is in response to the national and Anhui automotive industry revitalization plan, Anhui Xingma Automobile Group actively promotes the reorganization of the automobile industry, integrates high-quality resources, and builds regional automobile carriers. It is understood that the reorganization of Huaxing Automobile by Xingma Automobile is beneficial to the company's efforts to develop medium-heavy trucks, heavy-duty vehicles and their parts and components. Through restructuring, a higher platform can be established to reduce costs, enhance the company's core competitiveness and the profitability of listed companies, increase overall competitiveness, and strengthen the control of state-owned shares, which will help the company grow stronger and bigger.

It is understood that at the beginning of the year, the Xingma Group Company has clearly realized that with the continuous expansion of market share and brand influence of Hualing Heavy Trucks, the products will become more mature and stable, and Hualing Heavy Trucks will have a better development space in the domestic and foreign market competition. The advantages of Xingma Special Purpose Vehicle market have been further consolidated. Enterprises must establish their confidence, actively seize opportunities, and take advantage of the situation to quickly make the company bigger and stronger. For this reason, the group companies focus on the goal of building the company into the main force of the domestic automobile industry, focusing on the two major articles of production, sales, and research and development.

In terms of production and sales, Xingma Group insisted on perfecting its sales and service network, insisted on both international and domestic efforts, implemented key markets for key development, and set a target for sales to ensure that each order was fulfilled. Through the implementation of a series of measures such as focusing on people, finances, and commodities to break through the weak sales market, we have ensured a steady stream of orders for Hualing heavy trucks. In terms of product research and development, the Group's companies actively implemented brand-name and boutique strategies around the market, strengthened cooperation with top-ranking R&D institutions and international companies at home and abroad, gave full play to the R&D strength of the company's postdoctoral workstations, and strived to improve the technical performance and technological content of the products. Valin's high-end heavy-duty truck Kama was formally put on the market at the end of May this year, which greatly enhanced the brand image of Valin and promoted product sales. At the same time, Valin Star was a lightweight model that Valin launched this year and was distributed in Xi’an. After several months of formal promotion at the General Assembly, the rapid growth has played a big role in the significant increase in sales volume of Valin, and the two models of Xing Kaima and Valin Star have greatly enhanced the market competitiveness of Hualing Heavy Truck. .

Since 2009, the Xingma Group has enjoyed frequent successes. Looking ahead to 2010, Hualing will fully switch its new models to its overseas markets, and Hualing Heavy Trucks will use its high-end positioning and brand-new features to go all over the world. The company will make full use of the advantages of group resources and continuously introduce new products. Full-drive vehicles, special vehicles of all types, and new vehicles for special vehicles have enabled the company's product lines to be quickly expanded and extended, effectively penetrated into market segments, and combined local markets into one. Last month, Hualing shipped 300 heavy-duty trucks to Algeria in Tianjin. What is even more gratifying is that Valin has also signed a follow-up order of 1200 units with the same customer, of which 200 units will be shipped by the end of December. The remaining 1,000 units will be completed in 2010. All this shows that the "Blue Ocean Strategy" of Hualing Heavy Trucks is steadily advancing.

It is reported that next year, Hualing plans to produce and sell 25,000 heavy trucks, achieve sales revenue of 6 billion yuan for complete vehicles and parts, and achieve profits of more than 200 million yuan; Xingma Auto strives to complete 10,000 special vehicles of various types to achieve the output value of the entire vehicle and its components. 4 billion yuan, the group company is actively planning next year plans to strive to produce more than 10 billion, while the company will also implement an international strategy, open up the international market, strengthen international cooperation and actively develop new technologies, adhere to independent innovation, build their own brands, for our heavy duty The great development of trucks and the revitalization of the Anhui automobile industry have made new and even greater contributions.